Ovintiv Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 23 February 2026: press release. Guidance figures: 14 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Full year cash flow and free cash flow: Full year cash from operating activities was $3.7 billion and Non-GAAP Cash Flow was $3.8 billion. Non-GAAP Free Cash Flow was $1.6 billion after $2.1 billion of capital expenditures. Source
• Full year earnings included impairments: Full year net earnings were $1.2 billion, or $4.78 per diluted share. This included after-tax ceiling test impairments of $703 million, or $2.71 per share. Full year risk management gains in revenues were $172 million before tax. Source
• 2026 capital program announced: Management announced the 2026 capital program and the production and oil volumes it is expected to deliver. The figures are listed in the guidance section. Source
• New 2026 return framework: The new framework returns at least 75% of 2026 Non-GAAP Free Cash Flow through base dividends and buybacks. The longer-term range is 50% to 100% of annual Non-GAAP Free Cash Flow. Source
• $3.0 billion buyback authorization: The Board authorized a share buyback program totaling $3.0 billion to enable the framework. Management said buybacks are expected to start immediately. Source
• NuVista acquisition closed February 3: NuVista adds about 100 MBOE/d of production, 930 net 10,000-foot equivalent well locations and about 140,000 net acres, for about $2.7 billion. It closed February 3, 2026. Source
• Anadarko sale agreed for $3.0 billion: The planned sale of the Anadarko assets was announced earlier. In February 2026 an agreement was reached to sell them for total cash proceeds of $3.0 billion. Source

“We have transformed our company into an industry leader by executing at a high level, boosting our profitability, and completely transforming both our portfolio and balance sheet”

Ovintiv President and CEO, Brendan McCracken

Guidance

What changed from last quarter

• New guidance: First 2026 guidance issued for production, oil and condensate, NGLs, natural gas and capital, including a first-quarter figure and a post-Anadarko run-rate. Source
• New: New shareholder return framework: at least 75% of full year 2026 Non-GAAP Free Cash Flow returned, with a longer-term range of 50% to 100%. Source
• New: Share buyback program totaling $3.0 billion authorized by the Board, with buybacks expected to start immediately. Source
• New: Acquisition of NuVista Energy Ltd. announced and closed February 3, 2026, adding production, well locations and land. Source
• New: Agreement reached in February 2026 to sell the Anadarko assets for total cash proceeds of $3.0 billion, after an earlier planned sale was announced. Source

Full year and fourth quarter results

• Full year cash flow and free cash flow: Full year cash from operating activities was $3.7 billion and Non-GAAP Cash Flow was $3.8 billion. Non-GAAP Free Cash Flow was $1.6 billion after $2.1 billion of capital expenditures. Source
• Full year earnings included impairments: Full year net earnings were $1.2 billion, or $4.78 per diluted share. This included after-tax ceiling test impairments of $703 million, or $2.71 per share. Full year risk management gains in revenues were $172 million before tax. Source
• Fourth quarter earnings and impairment: Fourth quarter net earnings were $946 million, or $3.70 per diluted share. This included after-tax ceiling test impairments of $38 million, or $0.15 per share. Fourth quarter risk management gains in revenues were $75 million before tax. Source
• Fourth quarter cash flow and capital: Fourth quarter cash from operating activities was $954 million and Non-GAAP Free Cash Flow was $508 million after $465 million of capital expenditures. Source
• Production averaged 615 MBOE/d: Full year average total volumes were 615 MBOE/d. Fourth quarter average was 623 MBOE/d, including 209 Mbbls/d of oil and condensate and 1,905 MMcf/d of natural gas. Source

Permian and Montney performance

• Permian output in the quarter: Permian production averaged 219 MBOE/d in the fourth quarter, 79% liquids, and 215 MBOE/d for the full year. Source
• Montney output in the quarter: Montney production averaged 305 MBOE/d in the fourth quarter, 25% liquids, and 299 MBOE/d for the full year. Source
• Net wells turned in line by play: Montney had 20 net wells turned in line in the fourth quarter and 96 for the year. Permian had 30 in the fourth quarter and 136 for the year. Source

“Now we are introducing a new shareholder return framework that will deliver increased returns to our shareholders.”

Ovintiv President and CEO, Brendan McCracken

Realized prices and unit costs

• Full year realized prices: Full year realized prices including hedges were $64.48 per barrel for oil and condensate, $18.94 per barrel for other NGLs and $2.54 per Mcf for gas. Total was $32.59 per BOE. Source
• Fourth quarter realized prices: Fourth quarter realized prices including hedges were $59.55 per barrel for oil and condensate, $17.44 per barrel for other NGLs and $2.65 per Mcf for gas. Total was $30.74 per BOE. Source
• Unit costs at low end of guidance: Full year upstream operating expense was $3.80 per BOE. Transportation and processing was $7.51 per BOE. Production taxes were $1.27 per BOE, or 4.0% of upstream product revenue. Source

Capital spending and 2026 program

• 2025 capital within guidance: Full year 2025 capital investment was $2,147 million, within the $2,125 million to $2,175 million range. Fourth quarter capital was $465 million, within the $440 million to $490 million range. Source
• 2026 capital program announced: Management announced the 2026 capital program and the production and oil volumes it is expected to deliver. The figures are listed in the guidance section. Source
• Permian and Montney 2026 plans: Permian and Montney each have a 2026 plan with a set number of rigs and net wells. The Permian plan is the larger of the two in dollars. Source

“These actions set the stage for continued value creation.”

Ovintiv President and CEO, Brendan McCracken

Shareholder returns and balance sheet

• 2025 returns to shareholders: Full year 2025 returns totaled about $612 million, including about $304 million of buybacks for about 7.8 million shares and about $308 million of base dividends. Source
• New 2026 return framework: The new framework returns at least 75% of 2026 Non-GAAP Free Cash Flow through base dividends and buybacks. The longer-term range is 50% to 100% of annual Non-GAAP Free Cash Flow. Source
• $3.0 billion buyback authorization: The Board authorized a share buyback program totaling $3.0 billion to enable the framework. Management said buybacks are expected to start immediately. Source
• Liquidity and leverage at year end: Total liquidity was about $4.5 billion at December 31, 2025. Debt to EBITDA was 1.6 times and Debt to Adjusted EBITDA was 1.2 times. The company is rated investment grade by four agencies. Source

Acquisitions, divestiture and reserves

• NuVista acquisition closed February 3: NuVista adds about 100 MBOE/d of production, 930 net 10,000-foot equivalent well locations and about 140,000 net acres, for about $2.7 billion. It closed February 3, 2026. Source
• Anadarko sale agreed for $3.0 billion: The planned sale of the Anadarko assets was announced earlier. In February 2026 an agreement was reached to sell them for total cash proceeds of $3.0 billion. Source
• Inventory deepened by 3,200 locations: The CEO said the company deepened its inventory in its two basins by over 3,200 drilling locations, at what he described as an unmatched cost per location. Source
• Year-end reserves and replacement: Proved reserves were 2.3 billion BOE at year-end 2025, about 50% liquids and 64% proved developed. Reserve replacement was 150% of 2025 production, excluding acquisitions and divestitures. Source

Hedging and commodity exposure

• Oil swaps in place for 2026: As of February 20, 2026, WTI fixed price swaps of 3 to 4 Mbbls/d covered each 2026 quarter at prices from $63.90 to $64.48 per barrel. Source
• Gas swaps at NYMEX $4.07: As of February 20, 2026, NYMEX fixed price gas swaps of 13 to 20 MMcf/d covered each 2026 quarter at $4.07 per Mcf. Source
• NuVista hedge position valued: NuVista’s financial hedge position at close was valued at about $199 million. Those gains are booked as assets and settle into cash over time, outside Non-GAAP Cash Flow. Source

Coming up, as management said on 23 February 2026

• Anadarko sale close assumed April 1: The 2026 guidance assumes the Anadarko disposition closes on April 1, 2026. Source

Figures management reported

Risks management discussed

• External: Management said the company also manages other basis differential risks for gas, oil and condensate, in addition to commodity price exposure. Source
• Financial: NuVista hedge positions reduce Non-GAAP Cash Flow by listed amounts, from $27 million in 1Q 2026 down to $10 million in 4Q 2027. Source

Earlier plans management reported on

• Met: Full year 2025 capital investment of $2,147 million was reported as in line with the guidance range. Source
• Met: Full year upstream operating, transportation and processing, and production tax costs were reported at the low end of guidance on a combined basis. Source
• Met: The planned sale of the Anadarko assets, announced earlier, was followed by an agreement reached in February 2026. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.